The SafeMoon cryptocurrency may not have the brand name of Bitcoin, Dogecoin or Ethereum, but it entered the market in March with a unique promise: that it would avoid price fluctuations for which these three cryptocurrencies are known.
However, Wednesday’s cryptocurrency crash, following China’s intervention in favor of controlling digital currencies, raises questions about this claim.
SafeMoon, which is currently priced at a fraction of a cent, saw a sharp rise in prices in mid-April and most of May.
But since Wednesday, its price has fallen to about the same point it was on April 19, when the upward trajectory began. At the moment, its price is at 56% of its peak on April 20.
This may not seem particularly alarming, as with just one dollar you can buy over 177,000 SafeMoon tokens today.
But with the cryptocurrency’s market value already exceeding $3.4 billion in total, things aren’t play-laughed.
SafeMoon was designed to avoid such obstacles. The currency charges a 10% fee on each sale, hoping to discourage day traders.
Half of these funds are distributed to existing SafeMoon holders as a kind of dividend.
The creators also have more control over the supply of the currency, which was supposed to increase the price.
Critics, however, have targeted SafeMoon, saying that the group that owns it controls most of the liquidity, and have likened it to a Ponzi scheme, that is, our well-known “pyramid” scam.
SafeMoon rejects these criticisms, saying it intends to complete a SafeMoon wallet and explore the possibility of buying the cryptocurrency in exchanges, as well as setting up its own exchange.